Airbus

Airbus is currently the market leader in the aerospace industry. The company must decide on growth strategies by utilizing its core competencies, while taking into consideration the environment and business conditions. The Company also needs to develop defense strategies against Boeing, its major competitor, and attack strategies in order to maintain its top leadership position in the long-term.

Situational Analysis

Vision Statement

To maintain the top market leadership position in the aerospace industry by creating the best, safest, most reliable and fuel-efficient aircraft through innovation and technology.

Mission Statement

To meet the needs of airlines by producing the most modern and comprehensive aircraft family on the market, complemented by the highest standard of product support.

Key Facts

The key facts of the case have been summarized in Appendix K; these facts outline the history of Airbus as well as the timeline of the aerospace industry.

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Industry Analysis

During the early 1990s, many global aerospace commercial manufacturers discontinued operations due to poor demand. This created a near-duopoly for Airbus and Boeing.

There are few main products in the large commercial airplanes for two categories: the narrow-and wide-body jets designed to carry passenger and freight traffic, respectively.
The industry forecast the revenue passenger kilometers (RPKs) for the next two decades would grow at 5% per year. See Appendix A.

For aircraft orders between 2000 and 2009, Airbus received 6452 orders, while Boeing received 5927. The competition was intense, and each company regularly accused the other of receiving unfair state aid from their respective governments.

Current Strategies

Airbus continues to focus on innovative product development and efficiencies to maintain its leadership postion; see Appendix H for detail strategies.